Risk & Regulation
Vulnerable to depegging during market stress or poor reserves.
Regulatory risk if classified as a security or money market.
Needs compliance with KYC/AML in some jurisdictions.
Backed by audits, insurance, and governance protocols.
Example: 2022 depeg incident caused -$0.93 value briefly.
Often subject to regulator scrutiny (e.g., US SEC, FinCEN).
Insurance fund ≈ $10M to handle emergency redemptions.
